Retail crypto sentiment becomes bearish for the first time in 2020
The crypto market has recently reached levels of greed after spending much of the second half of 2019 for fear of a greater disadvantage in this asset class.
However, the sentiment has just come back down after the first two months of bullish 2020. Could this indicate that the encryption market is about to collapse? Or could it be an opposite sign that a greater advantage will surprise retailers?
Crypto Investors become bearish, expect more disadvantages in Bitcoin
Since the beginning of 2020, the encryption market has added more than 70% in new value to the total capitalization of the aggregate market.
The increase in valuations occurs when Bitcoin and the altcoins broke free of resistance to the downtrend and began a wild rally for more than two full months.
While the current local fund was established in mid-December at $ 6,400, the minimum for 2020 so far is at $ 6,800, it marked the last time that collective retail crypto traders were bearish in Bitcoin and other cryptocurrencies.
Since that date, Bitcoin increased from $ 6,800 to $ 10,500 before falling back to current prices.
Only now that the recovery is over, the large crypto market has become bearish once again.
According to an opinion poll, encryption operators expect Bitcoin to drop before reaching new highs. This is the first time the vote resulted in a bearish result since the beginning of the year.
Can the opposite trade lead to profitable positions?
When 2020 started, investors in retail cryptocurrencies were bearish and suggested they had been anticipating more disadvantages, meanwhile, the rally was just beginning.
Given the fact that retail investors are generally incorrect in their assumptions, just as their bearish sentiment began in early 2020, I might suggest that Bitcoin and altcoins are preparing for a new stage.
Another advantage would probably take cryptocurrency traders by surprise, given their expectations of a deeper fall in the coming days.
The change in the voting of feelings also coincides with the index of fear and greed of the crypto market that falters towards fear, after spending the last two months in territory of greed.
Even Omaha’s own Oracle, Warren Buffett defends the opposite strategy of being afraid when others are greedy and being greedy when others are afraid.
If Bitcoin advances from here, the iconic investor theory will be demonstrated once again, and retail crypto investors could leave FOMOing in Bitcoin and altcoins at a much higher price.
But even if Bitcoin falls, cryptocurrency traders will simply take advantage and buy the fall, with much higher price expectations that lead to halving or halving.
The cryptocurrency ecosystem moves to the rhythm of the rumors, the media characters launch their predictions and the speculative market moves in the direction that those with large amounts of crypto believe, blockchain-bitcoin technology has the technical attributes to change the World Finance Waiting for new announcements
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.